VANCOUVER, BRITISH COLUMBIA (Commodity Online): Silver Standard Resources Inc. (TSX:SSO)(NASDAQ:SSRI) has trimmed its losses to $1.4 mn($0.02) per share for the quarter ended June, 2009 as against a loss of $5.9 mn ($0.09) per share for the second quarter of 2008.

Effective January 1, 2009, the company adopted the U.S. dollar as its reporting currency and all figures are in U.S. dollars unless otherwise noted.
Update on Pirquitas Mine Ramp-up
During the second quarter, the company commenced the ramp-up of the plant by feeding historical jig tailings to the ball mill as planned. However, start-up issues were encountered, which resulted in delays. Following resolution of these start-up issues, operations were adversely affected by unseasonably cold weather until additional cold weather protective systems were installed. The ball mill and flotation circuits are now operating consistently and producing concentrate with the first concentrate shipment of 100 tonnes occurring at the end of July. The focus for this quarter is commissioning the crushing and tin circuits and improving silver concentrate grade.

With the delays caused by start-up issues, Pirquitas is now expected to produce approximately 3 million ounces of silver in 2009 and to achieve full production in 2010 of approximately 10 million ounces of silver.
As of June 30, 2009, the company had expended $221 million in construction costs. With the delays in start up, capital costs are now estimated to be $233 million.

Financial Highlights
- The company reports a second quarter loss of $1.4 million ($0.02 per share) for the three months ended June 30, 2009 compared to a loss of $ 5.9 million ($0.09 per share) for the second quarter of 2008.
- For the three months ended June 30, 2009, Silver Standard incurred $25.5 million for construction, $15.5 million for pre-operating costs and $0.1 million for mining equipment at the Pirquitas Mine.

- Significant exploration expenditures to advance other projects during the quarter included $1.2 million at the Pitarrilla Project in Mexico; $1.2 million at the San Luis Project in Peru; $0.6 million at the Diablillos Project in Argentina; and $1.0 million at the Snowfield Project in Canada.
- Cash and cash equivalents decreased from $72.0 million at December 31, 2008 to $52.8 million at June 30, 2009.

San Luis, Ancash, Peru
A feasibility study on placing the project into production is underway and is expected to be completed in the third quarter of 2009. An environmental impact study has also been initiated and is scheduled to be completed by the end of 2009. The joint venture is currently negotiating long-term land access agreements for the project.

Silver Standard presently holds a 55% interest in the San Luis Project and has elected to increase its interest to 70% by completing a feasibility study. Silver Standard has the right to increase its interest in the San Luis project to 80% by placing the project in production. The remaining joint venture interest is held by Esperanza Silver Corporation.

Pitarrilla, Durango, Mexico
During the second quarter, the company reported the results of a pre-feasibility study for the underground component of the Breccia Ridge Zone, the potential first phase of a staged underground and open pit development of Pitarrilla (news release dated June 24, 2009). Based on the pre-feasibility study, the underground component of Breccia Ridge now contains probable silver reserves of 91.7 million ounces. Proven and probable reserves for the company now total 286.8 million ounces of silver.

The Breccia Ridge Zone, containing 63% of Pitarrilla's total silver resource of 643.6 million ounces of measured and indicated silver resources and 82.3 million ounces of inferred silver resources, is the main focus of current project activities and is one of five zones of mineralization identified to date on the property.

As presented in the pre-feasibility study, the underground project has a 12-year mine life, mining 4,000 tonnes per day and producing approximately seven million ounces of silver per year. Capital costs are projected at $277 million with average operating costs of $33.81/tonne. Recoveries vary by rock type with expected weighted average recoveries of 88.4% for silver, 93.2% for zinc and 89.6% for lead. Ore processing will produce two concentrates: lead and zinc.

Breccia Ridge Underground
As part of the pre-feasibility study, the potential for underground bulk mining opportunities was identified for the Breccia Ridge underground resource which requires further study. As a result, a scoping study is underway, to be followed, if warranted, by a pre-feasibility study on the Breccia Ridge underground project. Feasibility-level studies are also continuing on certain aspects of the project.

Open Pit Opportunities
Concurrent with the advancement of the Breccia Ridge underground project, a scoping study is underway, to be followed, if warranted, by a pre-feasibility study on the Breccia Ridge open-pit opportunity. Metallurgical testwork on recoveries of the open-pit, oxide-sulfide material is in progress along with geotechnical drilling data for pit design.

In addition to Breccia Ridge, engineering and testwork continues on the four other surface zones: Pena Dike, Cordon Colorado, Javelina Creek and South Ridge. These four zones contain approximately one-third of total Pitarrilla resources and will complement the contemplated underground and open-pit scenarios of Breccia Ridge.

A total of $1,155,000 was spent on the Pitarrilla Project in Mexico during the quarter compared to $4,545,000 in the same quarter of the prior year. Pitarrilla is 100%-owned by Silver Standard and is among the largest silver discoveries in the last decade.

Diablillos, Salta, Argentina
In the second quarter, Silver Standard reported an updated resource estimate (news release dated June 18, 2009) for the Diablillos Project in the Province of Salta in northern Argentina. Diablillos is located 275 kilometers (171 miles) south of the company's Pirquitas Mine in the Province of Jujuy. The resource estimate follows recent diamond drilling which was successful in converting a significant portion of the of the previously reported inferred resources into the indicated category.

Based on a locked-cycle metallurgical program using conventional milling, preliminary precious metal recoveries averaged 86.9% for gold and 87.0% for silver. The heap leaching characteristics of the mineralization were also tested on a number of composites. Recoveries from column tests using a 3/4 inch crush averaged 65.2% for gold and 43.5% for silver. A pre-feasibility study will be undertaken that will explore various combinations of milling and heap leaching alternatives for this significant silver-gold resource.

A total of $555,000 was spent at the wholly-owned, silver-gold Diablillos Project in Argentina during the quarter compared to $967,000 in the same quarter of the prior year.

Snowfield, British Columbia, Canada
The Snowfield Project hosts a significant gold resource comprised of measured and indicated gold resources totalling 4,362,000 ounces and inferred gold resources of 14,276,000 ounces using a cut-off grade of 0.5 grams of gold-equivalent per tonne. There are currently six drills on site to complete at least 20,000 meters of diamond drilling this year. Results will be reported as received and a resource update is expected in the fourth quarter.

The Snowfield resource is part of an expansive gold camp located 65 kilometres north of the town of Stewart and 20 kilometres southeast of Barrick's high-grade gold-silver mine at Eskay Creek.

A total of $976,000 was spent at the wholly-owned gold project, compared to $140,000 in the same period in 2008.

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